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Council approves transfers of community reinvestment-area abatements; discussion clarifies annual administrative fees
Summary
Council approved two measures transferring community reinvestment-area (CRA) tax abatements to new owners and clarified the related administrative fee structure and term dates during debate.
Lorain City Council approved ordinances transferring existing community reinvestment-area (CRA) tax abatements from Park Square Lorain Holdings LLC to GTX Properties LLC and from Bennington Investments LLC to 6150 Park Square LLC.
Council members questioned the terms and fee schedule tied to the abatements. City staff explained the abatements began in 2019 and run through 2027 (a nine-year abatement tied to renovation work). The buyer assumes the existing agreement and the abatement remains with the property, not the prior owner.
Staff and council then clarified the annual administrative fee the new owner pays the city: the agreement sets the fee at 1% of the cumulative annual tax savings on the property with a minimum and maximum over the abatement term. The language cited in the record states the minimum total over the agreement term is $7,500 (equivalent to $500 per year over nine years) and the maximum total is $37,500 (equivalent to $2,500 per year over nine years). Council members asked whether any additional filing cost applies for the transfer; staff said no new transfer paperwork fee is required and that the original application fee had been paid when the abatement was first granted. Council approved the transfers unanimously.
